CGI reports first quarter Fiscal 2026 results

Core Insights - CGI reported a revenue of CAD 4.08 billion for Q1-F2026, reflecting a year-over-year growth of 7.7% and a constant currency growth of 3.4% [3][4] - The company achieved cash generation of CAD 872 million, representing 21.4% of revenue, indicating strong operational efficiency [3][7] - Managed services led the growth with a book-to-bill ratio of 117%, showcasing strong client demand for modernization and AI solutions [2][3] Financial Performance - Revenue increased by CAD 293.1 million compared to the previous year, with a notable growth in adjusted earnings before interest and taxes (EBIT) of CAD 655.1 million, up 7.1% year-over-year [3][15] - Earnings before income taxes were CAD 599.8 million, up 1.4% year-over-year, with a margin of 14.7% [5][15] - Net earnings reached CAD 442.0 million, a slight increase of 0.8% year-over-year, with diluted EPS rising to CAD 2.03, up 5.7% [6][15] Operational Metrics - The company reported bookings of CAD 4.47 billion, resulting in a book-to-bill ratio of 109.5% [3][7] - Backlog stood at CAD 31.32 billion, equivalent to 1.9 times the annual revenue, indicating a strong pipeline for future growth [3][7] - Cash provided by operating activities for the trailing twelve months was CAD 2.46 billion, representing 15.2% of revenue [7] Investment and Shareholder Returns - CGI invested CAD 86.5 million back into its business and acquired businesses for CAD 105.7 million net of cash acquired [9] - The company returned CAD 37.0 million to shareholders through dividends and initiated a Normal Course Issuer Bid to repurchase up to 18,975,360 Class A subordinate voting shares [17][19] Debt and Capitalization - Long-term debt and lease liabilities increased to CAD 4.29 billion, up from CAD 3.40 billion the previous year, primarily due to the issuance of senior unsecured notes [10][15] - Net debt rose to CAD 3.45 billion, with a net debt-to-capitalization ratio of 25.7% [10][15]